Correlation Between LG Display and SDAX Index
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By analyzing existing cross correlation between LG Display Co and SDAX Index, you can compare the effects of market volatilities on LG Display and SDAX Index and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in LG Display with a short position of SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and SDAX Index.
Diversification Opportunities for LG Display and SDAX Index
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LGA and SDAX is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding LG Display Co and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index and LG Display is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on LG Display Co are associated (or correlated) with SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of LG Display i.e., LG Display and SDAX Index go up and down completely randomly.
Pair Corralation between LG Display and SDAX Index
Assuming the 90 days horizon LG Display is expected to generate 5.57 times less return on investment than SDAX Index. In addition to that, LG Display is 1.84 times more volatile than SDAX Index. It trades about 0.03 of its total potential returns per unit of risk. SDAX Index is currently generating about 0.27 per unit of volatility. If you would invest 1,388,709 in SDAX Index on November 3, 2024 and sell it today you would earn a total of 73,131 from holding SDAX Index or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Display Co vs. SDAX Index
Performance |
| Timeline |
LG Display and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
LG Display Co
Pair trading matchups for LG Display
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with LG Display and SDAX Index
The main advantage of trading using opposite LG Display and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, SDAX Index can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SDAX Index will offset losses from the drop in SDAX Index's long position.| LG Display vs. T Mobile | LG Display vs. WillScot Mobile Mini | LG Display vs. Geely Automobile Holdings | LG Display vs. National Beverage Corp |
| SDAX Index vs. GRIFFIN MINING LTD | SDAX Index vs. Monster Beverage Corp | SDAX Index vs. Eurasia Mining Plc | SDAX Index vs. The Boston Beer |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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